Not sure this is needed. Total bond market or US treasuries are more than good enough. Not sure what this adds to a stock heavy index portfolio? The returns of total bond market and this fund will likely be very similar.I just wanted to share with Bogleheads that I have been loving the new fund called BTOT (iShares Total USD Fixed Income Market ETF.) I’ve been looking for a fund like this for many years. A true “one stop shop.” I feel like iShares has made it with BTOT, and I hope Vanguard jumps in at an even lower cost. (0.09% expense ratio is already low, but I bet Vanguard could do it for less.)
As a passive investor, nothing could be better, as BTOT tracks the new TOTALFI index, which covers virtually all US taxable bonds.
They say this is much broader than Total Bond Market, covering about 28% more than the aggregate, including TIPS!
A two-fund portfolio of VT (Vanguard Total World Stock Index Fund ETF) + BTOT or a three-fund portfolio of Total US Stock + Total International Stock (custom weights) + BTOT makes for an incredibly well diversified, market neutral, and complete investment. For those interested, here is the flyer for BTOT:
Get More In Your Core
https://www.ishares.com/us/literature/p ... et-etf.pdf
And here is a short paper about the TOTALFI index:
Measuring the Total Fixed Income Market: A Comprehensive
Indexing Framework
https://assets.bbhub.io/professional/si ... Market.pdf
(I would also like to mention that BTOT excludes international bonds. I am not yet convinced they are a good investment for a US investor. They appear to add significant complexity and latent risks, in my understanding. For an example, the hedge back to the US dollar could breakdown during times of crisis. The FX forward and swap markets…during 2008 and 2020, saw the cost of dollar hedging surging. This is one of several complications I have found. And unhedged international bonds, with extreme volatility, defeat the purpose of bonds in the first place. It’s a very complex topic. I’ll follow the lead of Taylor Larimore and skip them.)
Statistics: Posted by am — Wed Jan 07, 2026 9:07 am — Replies 7 — Views 419